#5 Deadly Sin of P&C Policy Administration

Today, I’ll be covering #5 in my series of deadly policy administration sins: failing to anticipate the evolving landscape of external systems.

From predictive modeling systems, to advanced forms, rating,
underwriting and billing engines; to structured and unstructured third-party
data, the external services and data available to P&C carriers have never
been better. But there’s a catch…with traditional policy administration
systems, it’s extremely difficult — and costly — to integrate with outside
systems.

It’s common for it to cost major carriers as much as
$250,000 each time a legacy policy administration system needs to be modified
to connect to another system. And that’s not the end of it. Those integrations
are version-specific — they must be re-written every time a piece of software
is upgraded. The result is major coding projects running almost constantly,
costing millions.

Not long ago, large insurance companies absolutely needed to
rely on the deep functionality offered by specialized systems and outside
services to remain competitive. As external vendors evolve and improve, it
makes sense for the carriers to be able to take advantage of their offerings —
and to do so quickly and efficiently.

That’s why our policy administration solution was engineered
with a comprehensive integration architecture in mind. It allows for seamless
integration with any other internal or external system through configuration —
rather than coding — in as little as a few hours. Imagine being able to point
to a new third-party data service or expert engine almost instantly and upgrade
any system without revisiting the integration points.

It’s never been more important for carriers to leverage
outside systems and services to improve underwriting profitability and enhance
customer experience. With Sapiens’ solution, they can – resulting in improved
customer service, enhanced data quality, reduced costs and increased profit
opportunities.

John Pettit

John Pettit is the head of Sapiens’ North American P&C Insurance Platform, with nearly two decades of experience in the P&C insurance market. He previously served as the founder, CEO and president of Adaptik Corporation, a North American insurance software firm that was acquired by Sapiens.